Sensex, Nifty Edge Higher on RBI Verdict Day as IndiGo Leads Gainers

Indian equity benchmarks opened on a firmer note on Wednesday, August 5, as traders squared positions ahead of the Reserve Bank of India's monetary policy verdict due later in the day. The BSE Sensex climbed roughly 300 points in early trade, while the Nifty 50 pushed past the 24,600 mark, extending a cautiously optimistic mood that has coloured the market through the week.

RBI Decision Awaited

The Monetary Policy Committee's three-day deliberations, which began on August 3, conclude today, with Governor Sanjay Malhotra scheduled to announce the outcome at 10:00 AM IST. Most economists tracking the central bank expect the repo rate to be held at 5.25 percent, the level it has stood at since the RBI's last cut in December 2025. The central bank has kept borrowing costs unchanged through several consecutive reviews as it balances inflation trends against the need to keep growth on track. With a hold widely priced in, investor attention is turning less to the rate itself and more to the tone of the accompanying statement, particularly any commentary on liquidity conditions, inflation forecasts and the growth outlook for the rest of the fiscal year.

Sentiment was also helped by improving global risk appetite after US Treasury Secretary Scott Bessent suggested that Washington and Tehran could move toward a resolution of tensions, a theme that has repeatedly lifted Indian markets in recent sessions by easing worries about crude oil supply disruptions. Lower oil prices are typically read as a positive for India, a large net importer of crude, since they ease pressure on the trade deficit and inflation.

Broader Market and Movers

Beyond the headline indices, the broader market showed a mixed but generally positive tone. The Nifty Midcap 100 edged up about 0.15 percent, while the Nifty Smallcap 100 outperformed with a gain of roughly 0.70 percent, suggesting risk appetite extended beyond large-cap names in early trade.

Among individual stocks, IndiGo was the standout gainer on the Sensex, rising close to 3 percent, followed by Mahindra & Mahindra, Bajaj Finserv and Larsen & Toubro. On the other side of the ledger, Sun Pharma, Titan and TCS were among the session's laggards, pulling back even as the broader index advanced.

What Investors Are Watching

Beyond the RBI verdict, market participants continue to track the ongoing corporate earnings season, with several large-cap and mid-cap companies reporting first-quarter results this week. Global cues, including the trajectory of crude oil prices and any further developments on the US-Iran diplomatic front, are also likely to influence trading in the sessions ahead. Foreign portfolio investor flows remain another swing factor, given their outsized influence on index-level moves in recent months.

With the policy announcement just hours away at the time of writing, analysts caution that volatility could pick up around the 10:00 AM statement and the subsequent press conference, where the governor is expected to field questions on the inflation trajectory, banking sector liquidity and the RBI's broader growth assessment for the year.

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